Frequently Asked Questions

By delegating your Tezos holdings to Tezos Vote you are actively participating in the delegated Proof-of-Stake mechanism of the Tezos network.
Tezos Vote bakes new blocks and endorses blocks as part of its operations and earns rewards by doing so.
Tezos Vote maintains the technical part of the delegation process in the blockchain, provides security to the network and posts security deposits.
A higher staking balance implies that Tezos Vote is responsible to bake and endorse more blocks thereby earns a stable return for its delegators.
As a delegator you will receive the rewards every cycle (approximately three blocks).
Click here for the step by step explanation of the delegation

Your rewards depend on your total stake that is delegated to Tezos Vote.
Your total stake will be used to determine your ratio.
Your stake is recalculated every cycle and uses by design of the Tezos protocol a snapshot in the cycle to calculate your ratio for the current cycle.
The reward structure of Tezos Vote is dynamic, that means that all delegators receive their rewards (minus fees) based on the current actual annual ROI of the protocol instead of a static reward.

Every delegator has it’s own dashboard (based on the KT1 Account) to follow the reward process. The real time data on your personal page shows your details,
predicts your estimated earnings for the following cycles and shows the actual rewards earned. Enter your KT1 Account in the top right corner to show your personal page.
As of September 2018, the current annual return on investment (ROI) is at 12%. Our expectation is that the annual ROI will decrease in the coming years to 5,5% on an annual basis. The ROI will decrease as more and more Tezos holders will activate their balance and delegate their holdings.
As of September 2018, around 50% of the Tezos supply is activated. An increase of the activated supply will lead to a lower ROI.

Calculation example
You delegate 5,000 ꜩ to Tezos Vote. The total staking balance of Tezos Vote is 2,500,000 ꜩ in the specific cycle.
The ratio of you as the delegator is 0,2%. Tezos Vote charges a dynamic fee of 15%. Tezos Vote received a total of 1,250 ꜩ in the cycle.
You will receive 1,250 ꜩ x 0,2% x (1 – 15%) = 2,09589 ꜩ in this cycle.

Tezos Vote will transfer your earned rewards every cycle (approximately three days) to your address.
The Tezos protocol is designed in a way that the baker uses the ratio of seven cycles back.
Received rewards are frozen for five more cycles.

Tezos Vote strongly advices you to do delegate, however you are not required to delegate.
The Tezos protocol possesses a non-dilutionary inflation system of 5.5% annually.
This means that the total number of Tezzies increases annually with 5.5%. Your relative share in the Tezos protocol will dilute when you decide not to delegate.

Tezos is a delegated Proof-of-Stake blockchain.
Stakeholders have an important task of providing resources to keep consensus with this unique, energy efficient governance mechanism.
By design of the delegation process, stakeholders provide resources to the blockchain.

Delegation is the process of attributing your Tezos holdings to a baker to earn block rewards.
Delegation is non-custodial and risk-free, which means that the Tezos will never your wallet and you are still able to spend or add new Tezos to your wallet.
Tezos Vote serves as a delegation service for Tezos holders that wish to delegate their balance

Tezos Vote is a delegation service and operates as a baker that bakes your Tezos on behalf of delegators.
The service has the responsibility to pay the necessary bonds.
Distribute the rewards earned equally and provide a secure environment for the baker service.